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ACCC hits Optus with legal proceedings over Supersonic deer ad

Optus’s “Supersonic” broadband promotion has fallen foul of the ACCC, with the industry regulator instituting proceedings against the telco claiming false advertising.

In a statement this morning, the Australian Competition and Consumer Commission said that it had instituted legal proceedings in the Federal Court in Sydney against Optus, claiming breaches of the Trade Practices Act. it said:

“The ACCC alleges that Optus engaged in misleading or deceptive conduct and made false representations in relation to the advertising of certain broadband plans as part of its ‘Think Bigger’ and ‘Supersonic’ promotional campaigns.

“Under these plans, a customer pays a specified monthly sum and receives a specified data allowance for that month divided into peak and off-peak periods. However, once the customer exceeds the peak data allowance, the internet connection is limited to a speed of 64kbps. The ACCC alleges that Optus did not sufficiently or clearly disclose, and in some cases did not disclose at all, these qualifications.

“The ACCC is seeking court orders, including declarations that Optus breached the Act, injunctions, including interlocutory injunctions, civil penalties, corrective advertising and costs.”

The Supersonic campaign, created by M&C Saatchi, launched three weeks ago.

In June, the ACCC issued proceedings aginst Optus over its use of the word “unlimited” in advertising.

At the time of posting, Optus had not responded to Mumbrella’s invitation to comment.

The court hearing has been set for next Thursday.

2.55pm update: An Optus spokesman said: “Optus acknowledges the claims made by the ACCC and looks forward to working with the ACCC to resolve any concerns they may have. We go to great length to offer the best products and services to our customers and to explain the value of those offers clearly.”

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